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Demands for Industry Status to supply chain & logistics in budget
29 Jun '09
6 min read
He added, “To sustain growth, India needs significant investment in Infrastructure including Roads, Rails and Ports in order to facilitate quicker and more efficient movement of goods across the country. The Government must take serious steps in this direction on an immediate basis.”
Speaking about the other key issues, Mr. Kanaujia added “Our country also has complex Regulatory structures which form a major bottleneck and bring down the on-road time of vehicles substantially. Bulk of the time which a vehicle takes in moving from one location to another is spent idling on the Check posts. Long halts by delivery vehicles are required to complete the formalities and to pay the cross-border fee at the state borders. The Government must take strong measures to ease the Regulatory bottlenecks. Also, Check posts must be automated on a war footing throughout the length & breadth of Indian geography. This could result into faster processing of documents and boost the operational efficiencies of Logistics companies.”
He continued, “Multiple Toll points on highways reduce efficiency and increase the delivery lead time. Also, the non-uniformity in toll charges creates irregularities in the cost structure.”
Mr. Kanaujia recommended, “The Government must implement a Centralized Toll Mechanism to bring about uniformity in Toll Charges across different check points. This will help in curtailing the down-time and enhance efficiency by increasing the on-road time of vehicles. Regulatory hurdles like Permits for moving goods to different states and Documentation at various check-posts need to be eased out.”
With respect to the varying tax structures across various states, Mr. Kanaujia added “Clearances from a host of Government bodies takes very long time. Our economy is losing billions of rupees every year, because of state-level entry taxes along with the related cost of fuel and the waiting time at check points. We would request the Government for a Uniform Tax Structure across the country to simplify the Government procedures with respect to movement of consignments.”
Speaking about the dearth of skilled professionals in Supply Chain & Logistics Sector, Mr. Kanaujia said, “There is an enormous shortage of skilled manpower in the Supply Chain & Logistics Sector. There is a scarcity of theoretical knowledge as well as practical expertise in this business. This leads to low skill levels that could hinder the growth of this Sector as well as the economy. We request the Government to acknowledge the requirement of skilled manpower for this Sector and to focus on the augmentation of skills by developing Academic Institutes and by introducing specialized courses for Supply Chain & Logistics in leading institutes.”
Mr. Kanaujia concluded by saying, “Our most important recommendation to the Government would be to recognize the Supply Chain & Logistics Sector as a full-fledged Industry. In this Budget the Government must provide an Industry status to Supply Chain & Logistics. A regulatory body should be created by the Government to look into the concerns of this Sector.”
“Given the massive contribution this Sector makes in the growth of our economy, it is imperative that it should be provided an Industry status at the earliest. Despite inefficient infrastructure and very tough regulatory environment in India, this Sector has been working round the clock for the last so many years, to ensure that our economy keeps growing. This Sector has still not got its due for the tremendous contribution it has been making in the astounding growth that our economy has shown over the last many years. It is high time that the Government recognized the contribution of this Sector in the economic success of our country.”
“We must remember that a major part of our economy is hugely dependent on the Supply Chain & Logistics Sector. This Sector is one of the Largest Employment providers of our economy. The Sector employs more than 45 million people.”
“For India Inc to grow at the rate of 8-9%, Supply Chain & Logistics Sector will need to contribute the maximum, otherwise growth can't be achieved at those levels. This Sector has far reaching implications on the economy, and going forward it will keep playing a pivotal role in the overall growth and development of our economy.”
Speaking about the other key issues, Mr. Kanaujia added “Our country also has complex Regulatory structures which form a major bottleneck and bring down the on-road time of vehicles substantially. Bulk of the time which a vehicle takes in moving from one location to another is spent idling on the Check posts. Long halts by delivery vehicles are required to complete the formalities and to pay the cross-border fee at the state borders. The Government must take strong measures to ease the Regulatory bottlenecks. Also, Check posts must be automated on a war footing throughout the length & breadth of Indian geography. This could result into faster processing of documents and boost the operational efficiencies of Logistics companies.”
He continued, “Multiple Toll points on highways reduce efficiency and increase the delivery lead time. Also, the non-uniformity in toll charges creates irregularities in the cost structure.”
Mr. Kanaujia recommended, “The Government must implement a Centralized Toll Mechanism to bring about uniformity in Toll Charges across different check points. This will help in curtailing the down-time and enhance efficiency by increasing the on-road time of vehicles. Regulatory hurdles like Permits for moving goods to different states and Documentation at various check-posts need to be eased out.”
With respect to the varying tax structures across various states, Mr. Kanaujia added “Clearances from a host of Government bodies takes very long time. Our economy is losing billions of rupees every year, because of state-level entry taxes along with the related cost of fuel and the waiting time at check points. We would request the Government for a Uniform Tax Structure across the country to simplify the Government procedures with respect to movement of consignments.”
Speaking about the dearth of skilled professionals in Supply Chain & Logistics Sector, Mr. Kanaujia said, “There is an enormous shortage of skilled manpower in the Supply Chain & Logistics Sector. There is a scarcity of theoretical knowledge as well as practical expertise in this business. This leads to low skill levels that could hinder the growth of this Sector as well as the economy. We request the Government to acknowledge the requirement of skilled manpower for this Sector and to focus on the augmentation of skills by developing Academic Institutes and by introducing specialized courses for Supply Chain & Logistics in leading institutes.”
Mr. Kanaujia concluded by saying, “Our most important recommendation to the Government would be to recognize the Supply Chain & Logistics Sector as a full-fledged Industry. In this Budget the Government must provide an Industry status to Supply Chain & Logistics. A regulatory body should be created by the Government to look into the concerns of this Sector.”
“Given the massive contribution this Sector makes in the growth of our economy, it is imperative that it should be provided an Industry status at the earliest. Despite inefficient infrastructure and very tough regulatory environment in India, this Sector has been working round the clock for the last so many years, to ensure that our economy keeps growing. This Sector has still not got its due for the tremendous contribution it has been making in the astounding growth that our economy has shown over the last many years. It is high time that the Government recognized the contribution of this Sector in the economic success of our country.”
“We must remember that a major part of our economy is hugely dependent on the Supply Chain & Logistics Sector. This Sector is one of the Largest Employment providers of our economy. The Sector employs more than 45 million people.”
“For India Inc to grow at the rate of 8-9%, Supply Chain & Logistics Sector will need to contribute the maximum, otherwise growth can't be achieved at those levels. This Sector has far reaching implications on the economy, and going forward it will keep playing a pivotal role in the overall growth and development of our economy.”
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